Bill Text: IN SB0091 | 2013 | Regular Session | Amended
Bill Title: Motorsports investment district.
Spectrum: Moderate Partisan Bill (Republican 11-3)
Status: (Enrolled - Dead) 2013-04-22 - Senator Kruse added as coauthor [SB0091 Detail]
Download: Indiana-2013-SB0091-Amended.html
Citations Affected: IC 4-4; IC 5-1.
Synopsis: Motorsports investment district. Provides that the Indiana
finance authority (authority) may adopt a resolution establishing a
motorsports investment district. Specifies that the budget committee
shall review and make a recommendation to the budget agency
regarding a resolution establishing a motorsports investment district.
Provides that if a resolution establishing a motorsports investment
district is approved by the budget agency, state sales tax and state
individual income tax generated in the district shall be allocated to the
authority. Specifies that the maximum amount of covered taxes that
may be captured from the motorsports investment district and allocated
to the authority in a state fiscal year may not exceed $5,000,000.
Provides that covered taxes may be captured from the motorsports
investment district only for 20 years. Provides that the authority may
issue bonds for the purpose of obtaining money to pay the cost of
improving, constructing, reconstructing, renovating, acquiring, or
equipping structures and capital improvements within a qualified
motorsports facility.
Effective: Upon passage.
Miller Patricia, Merritt, Crider, Taylor, Schneider, Hume, Skinner
January 7, 2013, read first time and referred to Committee on Rules and Legislative
Procedure.
February 11, 2013, amended; reassigned to Committee on Appropriations.
February 14, 2013, amended, reported favorably _ Do Pass.
February 18, 2013, read second time, amended, ordered engrossed.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
(1) That there currently exists in certain areas of the state critical conditions of unemployment, inadequate drinking water, inadequate wastewater and storm water management, or environmental pollution, including water pollution, air pollution, sewage and solid waste, radioactive waste, thermal pollution,
radiation contamination, and noise pollution, and that these
conditions may well exist, from time to time, in other areas of the
state.
(2) That in some areas of the state such conditions are chronic and
of long standing and that without remedial measures they may
become so in other areas of the state.
(3) That economic insecurity due to unemployment, inadequate
drinking water, inadequate wastewater and storm water
management, or environmental pollution is a menace to the
health, safety, morals, and general welfare of not only the people
of the affected areas but of the people of the entire state.
(4) That involuntary unemployment and its resulting burden of
indigency falls with crushing force upon the unemployed worker
and ultimately upon the state in the form of public assistance and
unemployment compensation.
(5) That security against unemployment and the resulting spread
of indigency and economic stagnation in the areas affected can
best be provided by:
(A) the promotion, attraction, stimulation, rehabilitation, and
revitalization of industrial development projects, rural
development projects, mining operations, and agricultural
operations that involve the processing of agricultural products;
(B) the promotion and stimulation of international exports; and
(C) the education, both formal and informal, of people of all
ages throughout the state by the promotion, attraction,
construction, renovation, rehabilitation, and revitalization of
and assistance to educational facility projects.
(6) That the present and prospective health, safety, morals, right
to gainful employment, and general welfare of the people of the
state require as a public purpose the provision of safe drinking
water, the provision of wastewater and storm water management,
the abatement or control of pollution, the promotion of increased
educational enrichment (including cultural, intellectual, scientific,
or artistic opportunities) for people of all ages through new,
expanded, or revitalized educational facility projects or through
assisting educational facility projects, and the promotion of
employment creation or retention through development of new
and expanded industrial development projects, rural development
projects, mining operations, and agricultural operations that
involve the processing of agricultural products.
(7) That there is a need to stimulate a larger flow of private
investment funds from commercial banks, investment bankers,
insurance companies, other financial institutions, and individuals
into such industrial development projects, rural development
projects, mining operations, international exports, and agricultural
operations that involve the processing of agricultural products in
the state.
(8) That the authority can encourage the making of loans or leases
for creation or expansion of industrial development projects, rural
development projects, mining operations, international exports,
and agricultural operations that involve the processing of
agricultural products, thus putting a larger portion of the private
capital available in Indiana for investment to use in the general
economic development of the state.
(9) That the issuance of bonds of the authority to create a
financing pool for industrial development projects and carrying
out the purposes of IC 13-18-13 and IC 13-18-21 promoting a
substantial likelihood of opportunities for:
(A) gainful employment;
(B) business opportunities;
(C) educational enrichment (including cultural, intellectual,
scientific, or artistic opportunities);
(D) the abatement, reduction, or prevention of pollution;
(E) the provision of safe drinking water;
(F) the provision of wastewater and storm water management;
(G) the removal or treatment of any substances in materials
being processed that otherwise would cause pollution when
used; or
(H) increased options for and availability of child care;
will improve the health, safety, morals, and general welfare of the
people of the state and constitutes a public purpose for which the
authority shall exist and operate.
(10) That the issuance of bonds of the authority to create a
funding source for the making of guaranteed participating loans
will promote and encourage an expanding international exports
market and international exports sales and will promote the
general welfare of all of the people of Indiana by assisting Indiana
businesses through stimulation of the expansion of international
exports sales for Indiana products and services, especially those
of small and medium-sized businesses, by providing financial
assistance through the authority.
(b) The Indiana finance authority shall exist and operate for the
public purposes of:
(1) promoting opportunities for gainful employment and business
opportunities by the promotion and development of industrial
development projects, rural development projects, mining
operations, international exports, and agricultural operations that
involve the processing of agricultural products, in any areas of the
state;
(2) promoting the educational enrichment (including cultural,
intellectual, scientific, or artistic opportunities) of all the people
of the state by the promotion, development, and assistance of
educational facility projects;
(3) promoting affordable farm credit and agricultural loan
financing at interest rates that are consistent with the needs of
borrowers for farming and agricultural enterprises;
(4) preventing and remediating environmental pollution,
including water pollution, air pollution, sewage and solid waste
disposal, radioactive waste, thermal pollution, radiation
contamination, and noise pollution affecting the health and
well-being of the people of the state by:
(A) the promotion and development of industrial development
projects; and
(B) carrying out the purposes of IC 13-18-13 and IC 13-18-21;
(5) promoting the provision of safe and adequate drinking water
and wastewater and storm water management to positively affect
the public health and well-being by carrying out the purposes of
IC 13-18-13 and IC 13-18-21;
(6) otherwise positively affecting the public health and well-being
by carrying out the purposes of IC 13-18-13 and IC 13-18-21; and
(7) promoting affordable and accessible child care for the people
of the state by the promotion and development of child care
facilities; and
(8) carrying out the purposes of IC 5-1-17.5 concerning a
motorsports investment district.
(1) issue bonds under terms and conditions determined by the authority and use the proceeds of the bonds to acquire obligations issued by any entity authorized to acquire, finance, construct, or lease capital improvements under IC 5-1-17;
(2) issue bonds under terms and conditions determined by the authority and use the proceeds of the bonds to acquire any obligations issued by the northwest Indiana regional development
authority established by IC 36-7.5-2-1; and
(3) after December 31, 2009, issue bonds under terms and
conditions determined by the authority and use the proceeds of
the bonds to acquire any obligations issued by either the
commuter rail service board established under IC.8-24-5 or the
regional demand and scheduled bus service board established
under IC.8-24-6; and
(4) issue bonds under terms and conditions determined by the
authority and use the proceeds of the bonds to carry out the
purposes of IC 5-1-17.5 within a motorsports investment
district.
Chapter 17.5. Motorsports Investment District
Sec. 1. As used in this chapter, "authority" refers to the Indiana finance authority.
Sec. 2. As used in this chapter, "bonds" has the meaning set forth in IC 4-4-10.9-2.
Sec. 3. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1-3.
Sec. 4. As used in this chapter, "budget committee" means the budget committee established by IC 4-12-1-3.
Sec. 5. As used in this chapter, "covered taxes" means the part of the following taxes generated in a motorsports investment district designated under this chapter:
(1) The state gross retail tax imposed under IC 6-2.5-2-1 or use tax imposed under IC 6-2.5-3-2.
(2) An adjusted gross income tax imposed under IC 6-3-2-1 on an individual.
Sec. 6. As used in this chapter, "department" refers to the department of state revenue.
Sec. 7. As used in this chapter, "motorsports investment district" means the special taxing district containing the geographic area established as a motorsports investment district under this chapter.
Sec. 8. (a) As used in this chapter, "qualified motorsports facility" means a facility that:
(1) is located within the town of Speedway;
(2) is used for professional motorsports racing events;
(3) has a motorsports racetrack that is greater than two (2) miles in length; and
(4) holds at least two (2) professional motorsports racing events at which the combined admissions total at least two hundred thousand (200,000).
(b) For purposes of this section, a professional motorsports racing event includes a professional motorsports racing practice session that is open to the general public.
Sec. 9. (a) The authority may, after a public hearing, adopt a resolution establishing a motorsports investment district. Notice of the public hearing must be provided in accordance with IC 5-3-1.
(b) In establishing the motorsports investment district, the authority must make the following findings:
(1) There are capital improvements that will be undertaken in the motorsports investment district that will have a positive effect on the activities of a qualified motorsports facility.
(2) The capital improvements that will be undertaken in the motorsports investment district will benefit the public health and welfare and will be of public utility and benefit.
(3) The capital improvements that will be undertaken in the motorsports investment district will protect or increase state and local tax bases and tax revenues.
(c) A motorsports investment district consists of:
(1) the geographic area that is included within the qualified motorsports facility; and
(2) adjacent property that is:
(A) related to the operation of the qualified motorsports facility; and
(B) owned by the owner of the qualified motorsports facility;
as determined in the resolution adopted by the authority and approved by the budget agency under section 12 of this chapter.
Sec. 10. (a) A resolution establishing a motorsports investment district must provide for the allocation to the professional motorsports development area fund (established under section 14 of this chapter) of covered taxes generated in the motorsports investment district. The allocation provision must apply to the entire motorsports investment district. The resolution must state an expiration date for the motorsports investment district, which must be not later than thirty (30) years after the date of the adoption of the resolution. The authority shall specify in the resolution the geographic area that is included within the motorsports investment district.
(b) The department may adopt rules under IC 4-22-2 and
guidelines to govern the allocation of covered taxes to the
motorsports investment district.
Sec. 11. (a) Upon adoption by the authority of a resolution
establishing a motorsports investment district under this chapter,
the authority shall submit the resolution to the budget committee
for review and recommendation to the budget agency.
(b) The budget committee shall meet not later than sixty (60)
days after receipt of a resolution under subsection (a) and shall
make a recommendation on the resolution to the budget agency.
Sec. 12. (a) The budget agency must approve the resolution
establishing the motorsports investment district before covered
taxes may be allocated under this chapter.
(b) To approve a resolution to establish a motorsports
investment district, the budget committee and the budget agency
must find that the capital improvements to be made within the
qualified motorsports facility are economically sound and will
benefit the people of Indiana by protecting or increasing state and
local tax bases and tax revenues for at least the duration of the
motorsports investment district.
(c) The maximum amount of covered taxes that may be
captured from the motorsports investment district and allocated to
the professional motorsports development area fund (established
under section 14 of this chapter) in a state fiscal year may not
exceed five million dollars ($5,000,000).
(d) Covered taxes may be captured from the motorsports
investment district and allocated to the professional motorsports
development area fund (established under section 14 of this
chapter) only for twenty (20) years from the date on which covered
taxes are first allocated to the professional motorsports
development area fund.
Sec. 13. (a) If the authority adopts a resolution establishing a
motorsports investment district, the authority shall notify the
department by certified mail of the adoption of the resolution and
shall include with the notification a complete list of the following:
(1) Employers in the motorsports investment district.
(2) Street names and the range of street numbers of each
street in the motorsports investment district.
(b) The authority shall update the list prepared under
subsection (a) before July 1 of each year.
Sec. 14. (a) If a motorsports investment district is established
under this chapter, a state fund known as the professional
motorsports development area fund is established for the
motorsports investment district. The fund shall be administered by
the department. Money in the fund does not revert to the state
general fund at the end of a state fiscal year.
(b) Covered taxes attributable to a motorsports investment
district shall be deposited in the professional motorsports
development area fund as provided in this chapter.
(c) On or before the twentieth day of each month, all amounts
held in the professional motorsports development area fund shall
be distributed to the authority.
(d) The department shall notify the fiscal officer of the authority
of the amount of covered taxes to be distributed to the authority
under this section.
(e) All distributions from the professional motorsports
development area fund to the authority shall be made by warrants
issued by the auditor of state to the treasurer of state ordering
those payments to the authority.
(f) Distributions from the professional motorsports development
area fund to the authority may be used for the following:
(1) Structures or other capital improvements that are located
in a qualified motorsports facility.
(2) Financing or refinancing structures or other capital
improvements described in subdivision (1) or the payment of
bonds or leases for structures or other capital improvements
described in subdivision (1).
Sec. 15. (a) The authority may do any of the following:
(1) Finance, improve, construct, reconstruct, renovate,
purchase, lease, acquire, and equip structures and capital
improvements within a qualified motorsports facility.
(2) Lease or sell structures or capital improvements to a
qualified motorsports facility.
(3) Exercise the authority's powers under IC 4-4-11 within a
qualified motorsports facility.
(b) The authority is subject to the provisions of 25 IAC 5
concerning equal opportunities for minority business enterprises
and women's business enterprises to participate in procurement
and contracting processes. In addition, the authority shall set a
goal for participation by minority business enterprises of fifteen
percent (15%) and women's business enterprises of five percent
(5%), consistent with the goals of delivering the project on time
and within the budgeted amount and, insofar as possible, using
Indiana businesses for employees, goods, and services. In fulfilling
the goal, the authority shall take into account historical precedents
in the same market.
Sec. 16. (a) Subject to subsection (g), the authority may issue
bonds for the purpose of obtaining money to pay the cost of
improving, constructing, reconstructing, renovating, acquiring, or
equipping structures and capital improvements within a qualified
motorsports facility. The total amount of bonds that the authority
may issue under this chapter may not exceed one hundred million
dollars ($100,000,000).
(b) The bonds shall be authorized by a resolution of the
authority.
(c) The terms and form of the bonds must be set out either in the
resolution or in a form of trust indenture approved by the
resolution.
(d) The bonds must mature within twenty (20) years.
(e) The authority shall sell the bonds at public or private sale
upon the terms determined by the authority.
(f) All money received from any bonds issued under this chapter
shall be applied to the payment of the cost of improving,
constructing, reconstructing, renovating, acquiring, or equipping
structures and capital improvements within a qualified
motorsports facility, or payment of the cost of refunding or
refinancing outstanding bonds for which the bonds are issued. The
cost may include:
(1) planning and development of the capital improvement and
all buildings, facilities, structures, and improvements related
to it;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that
are necessary or desirable to make the capital improvement
suitable for use and operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and
sale of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) bond insurance, debt service reserve insurance, letters of
credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums (if any) for, and interest
on the bonds being refunded or refinanced.
(g) The authority may not issue bonds under this chapter unless
the authority first finds that the following conditions are met:
(1) Each contract or subcontract for the construction of a
capital improvement to be financed in whole or in part
through the issuance of the bonds:
(A) requires payment of the common construction wage
required by IC 5-16-7; and
(B) requires the contractor or subcontractor to enter into
a project labor agreement as a condition of being awarded
and performing work on the contract.
(2) The qualified motorsports facility and the authority have
entered into a written agreement concerning the terms of the
financing of the capital improvement.
Sec. 17. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings,
publications, notices, consents, approvals, orders, or acts by the
authority or any other officer, department, agency, or
instrumentality of the state or of any political subdivision is
required to issue any bonds under this chapter, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies,
insurance companies, building and loan associations, credit unions,
banks of discount and deposit, savings banks, loan and trust and
safe deposit companies, rural loan and savings associations,
guaranty loan and savings associations, mortgage guaranty
companies, small loan companies, industrial loan and investment
companies, and other financial institutions organized under
Indiana law.
Sec. 18. (a) The authority may secure bonds issued under this
chapter by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank
within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign:
(A) covered taxes; and
(B) lease rentals, receipts, and income from leased capital
improvements;
but may not mortgage land or capital improvements;
(2) contain reasonable and proper provisions for protecting
and enforcing the rights and remedies of the bondholders,
including covenants setting forth the duties of the authority;
(3) set forth the rights and remedies of bondholders and
trustee; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding from the time that the pledge or
assignment is made, against all persons whether or not they have
notice of the lien. Any trust indenture by which a pledge is created
or an assignment made need not be filed or recorded. The lien is
perfected against third parties by filing the trust indenture in the
records of the authority.
Sec. 19. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after the fifteenth day
following:
(1) the receipt of bids for the bonds, if the bonds are sold at
public sale; or
(2) the publication one (1) time in a newspaper of general
circulation published in the county of notice of the execution
and delivery of the contract for the sale of bonds;
whichever occurs first.
